How to Do a Chapter 13 Dismissal

By Seamus Flaherty

While a lot of thought and planning normally accompanies the decision to file for bankruptcy, you may ultimately decide you do not want to continue making the payments on your Chapter 13 plan.  Maybe your plan payments are higher than you anticipated, or perhaps a new job will allow you to pay your debts without the oversight of the bankruptcy court.  Regardless of your reasons, if you filed your bankruptcy under Chapter 13, obtaining a dismissal is a fairly straightforward process.

While a lot of thought and planning normally accompanies the decision to file for bankruptcy, you may ultimately decide you do not want to continue making the payments on your Chapter 13 plan.  Maybe your plan payments are higher than you anticipated, or perhaps a new job will allow you to pay your debts without the oversight of the bankruptcy court.  Regardless of your reasons, if you filed your bankruptcy under Chapter 13, obtaining a dismissal is a fairly straightforward process.

Step 1

Obtain a "Debtor's Motion for Voluntary Dismissal of Chapter 13 Case," or similarly titled, form to request dismissal of your case. Using a pre-formatted form will help streamline your efforts and ensure you provide all of the relevant information to the court. Check to see whether one is available on your bankruptcy court’s website or ask the bankruptcy clerk of court whether it can provide one.

Protect your loved ones by a legally binding will. Make a Will Online Now

Step 2

Make any edits necessary to reflect the jurisdiction in which you filed. For example, if you are using a form from another bankruptcy court, replace any references to that jurisdiction with the jurisdiction in which you filed and remove references to local rules. This may require retyping the form using a word processing program.

Step 3

Complete the caption, or heading, of your dismissal request form. You will normally be asked to state your name and address, case number and case name. If you are unsure about any of this information, previous orders issued by the court in your case will be a helpful guide.

Step 4

Provide the relevant substantive information. In accordance with federal bankruptcy law, you need to state whether your Chapter 13 bankruptcy was converted from a Chapter 7 and whether you have made any agreements with any of your creditors regarding your dismissal. You may also be asked to give your reasons for dismissal. However, bankruptcy law does not require good cause for dismissal so keep your explanation simple if asked.

Step 5

Sign the completed dismissal request form and make sure any co-debtor, such as your spouse, does the same.

Step 6

File your request for dismissal with the clerk of the bankruptcy court. Before taking this step, however, call the clerk of court to make sure that there are no hearings scheduled in your case and that you do not need to send notice of your dismissal request to additional parties.

Protect your loved ones by a legally binding will. Make a Will Online Now
How to Cancel a Bankruptcy After It's Been Filed

References

Related articles

How to Correct Mistakes on Bankruptcy Forms Already Submitted

When you filed your petition for bankruptcy with the U.S. Bankruptcy Court, you were required to state under oath that the statements made therein were true and correct. Making false statements in court pleadings may subject you to severe criminal and civil penalties. Therefore, if you made any erroneous statements on your bankruptcy petition, you should amend your filings with the court to correct any mistakes. Under bankruptcy rules, you are permitted to amend your petition any time prior to the closing of your bankruptcy case.

What is a Notice of Dismissal of Bankruptcy?

Bankruptcy is a legal process by which debtors may restructure or obtain relief from overwhelming debts and get a fresh start on building a positive economic future. The bankruptcy court process has stringent rules and timelines to insure the debtor and creditors are treated fairly. Failure to abide by these rules may lead to dismissal of the bankruptcy, but in most instances, the debtor will be allowed to refile.

How to Reinstate a Dismissed Bankruptcy

At the conclusion of your bankruptcy case, you typically will receive a bankruptcy discharge. A bankruptcy discharge means that all of the debts that are included in your bankruptcy case are erased and your creditors cannot pursue collection action against you to enforce the debts, like filing a civil lawsuit. During the bankruptcy case, you can ask the court to dismiss your case, or the court may dismiss your case on its own, and you will not receive a bankruptcy discharge. However, you can ask the bankruptcy court to reinstate your bankruptcy if it is dismissed by the court.

LegalZoom. Legal help is here. Start Here. Wills. Trusts. Attorney help.

Related articles

How to Amend Chapter 7 After it Has Been Filed

Filing for bankruptcy requires you to honestly state information regarding your financial situation, including your ...

How to Find Out if a Bankruptcy Filing Has Been Dismissed in Alabama

A dismissal ends your bankruptcy case and can have severe consequences. For example, if your bankruptcy case is ...

What Happens When Chapter 13 Is Dismissed?

Chapter 13 bankruptcy allows you to create a three- to five-year repayment plan to catch up on your debts. If your case ...

How Will I Be Notified That My Chapter 7 Bankruptcy Case Is Closed?

The closing of a Chapter 7 bankruptcy case signifies the end of the bankruptcy. At the end of the case, you will ...

Browse by category